According to the ČSOB housing index, property prices in the Czech Republic saw an upward trend at the end of last year.
The largest year-on-year increase in the fourth quarter occurred in apartment prices, which rose by 7%. Houses increased by 6.4%, and land prices saw a growth of 4.8% compared to the same period in 2023. On a quarterly basis, prices also went up, with apartments experiencing the highest increase of 3.4%, while houses rose by 1.9%, and land prices grew by 1.4% compared to the third quarter.
Martin Vašek, the CEO of ČSOB Hypoteční banka, stated that the Czech real estate market has “definitely returned to steady growth in 2024,” as seen by the new price peak in the apartment category. In the fourth quarter of 2024, both new homes and older apartments saw high demand. The average selling time decreased to 3.8 months. The largest price increase for apartments was observed in the Moravian-Silesian region (4.6%), followed by the Ústí and Hradec Králové regions (4%), as well as Central Bohemia and Prague (4%).
Vašek explained that the rise in apartment prices can be attributed to the strong demand for personal housing and the reduced supply of apartments on the market. While the availability of older apartments is shrinking, the number of new apartments in developer projects is on the rise. Small apartments of up to 45 square meters have attracted significant interest. The average rent has increased by 15% compared to last year, with the greatest growth observed in the Olomouc region.
Housing sales have stagnated, and demand is weaker than it was before the COVID-19 pandemic. Houses in areas impacted by the September floods have seen poor sales, as buyers are waiting for the restoration of infrastructure. Most new houses are being built in the Central Bohemian region and around Brno, with construction supported by the slowing growth of construction costs.
The demand for land continues to surpass supply, leading to consistent price increases. Factors such as outdated zoning plans and insufficient infrastructure capacity are influencing supply, forcing those seeking land to look farther from major cities.
